Research from Goode Intelligence sets out the qualitative and quantitative basis for the return on investment from the use of biometric authentication.
The study, The Business Case for Biometric Authentication, concluded the following benefits can be derived from biometric authentication:
- Better customer engagement contributing to Net Promoter Score (NPS) with 45 percent of survey respondents expressing ‘very high’ agreement with the statement: “My organization has seen an increased NPS as a result of deploying biometrics”
- Lower customer acquisition costs
- Operational cost efficiencies with 56 percent of survey respondents seeing reduced call center call volume benefits as a result of deploying biometrics, leading to a calculated cost saving for a bank with five million customers of $6.25M annually
- Security and compliance benefits, including PSD2, with 78 percent of survey respondents seeing increased compliance as a result of deploying biometrics, particularly addressing Open Banking/PSD2 Strong Customer Authentication
- Consistent customer experience across channels that can lead to a cost benefit of multiple millions of dollars annually by replacing numerous authentication systems with a single authentication platform that supports all channels
Alan Goode, founder and CEO of Goode Intelligence and author of the report, said, “The benefit of biometric authentication is that it can balance both security and convenience without requiring a compromise of either. A multi-factor platform using biometrics can identify or authenticate across all business units, customers and channels in a consistent way, supporting an omni-channel strategy. There are significant benefits compared to legacy approaches. Dealing with these issues within large financial service providers is now a C-Suite problem. Evidence shows that the business case, cost saving and ROI of deploying biometric authentication exists across multiple business units.”